Deutsche Telekom has made an investment of 5.5 billion euros (+7.6 percent) towards capital expenditure (Capex) in the first half of 2016.
Capex of Deutsche Telekom in Q2 2016 was 2,664 million euros (+3.5 percent).
The Capex related focus area of Deutsche Telekom was making investment in the expansion of telecom network and IP transformation.
“We continue to invest massively and constantly work with ideas and initiatives to offer customers the best service experience,” said Tim Hottges, CEO of Deutsche Telekom.
“We want to maintain the momentum in our fiber-optic lines with the Germany-wide vectoring roll-out. We are happy to carry competitors on our network – but we will fight for every single customer, that is crystal clear,” Tim Hottges said.
In Germany, according to Deutsche Telekom, the number of fiber-optic lines went up by 578,000 in the second quarter of 2016 to 5.6 million.
LTE coverage in Germany increased 6 percent within a year to 91 percent. Households in Germany that have the option of connecting to Deutsche Telekom’s fiber-optic network increased 10 percent to 57 percent, an increase of well over 4 million households.
In Europe, household coverage with fixed-network optical fiber increased by almost 1 million and stands at 21.4 percent of households. In mobile communications, population coverage increased by some 19 million to 97 million people, or 75 percent of the population.
In the years 2014 to 2016, Deutsche Telekom invested an average of almost 5 billion euros per year in Germany across all segments, a rate of almost 20 percent of revenue.
The majority of the investments went into building out the network, which underpinned strong demand for fiber-optic lines in Germany. The increase by 578,000 fiber-optic lines in the second quarter was once again a good third higher than in the prior-year quarter. Half of the new lines were added in branded business, half in wholesale business.
It added 64,000 broadband customers. This trend contributed to the growth of broadband revenues in the German fixed network – comprising double-play and triple-play revenues including Entertain – by 1.8 percent in the second quarter to 1.3 billion euros.
T-Mobile US’ LTE network coverage increased by around 20 million people to 311 million. T-Mobile US won 1.9 million new customers in the second quarter. T-Mobile US revenue increased by 12.6 percent to $9.3 billion.
More than half of the fixed-network lines in the European companies have now been migrated to IP.
Deutsche Telekom revenue
Deutsche Telekom achieved revenue growth of 2.2 percent in the second quarter to 17.8 billion euros. Net profit fell 12.8 percent to 621 million euros.
Deutsche Telekom generated revenue of 5,406 million (–3.1 percent) in Germany, 8,196 million euros (+10.1 percent) in the U.S., 3,106 million euros (–3.2 percent) and 2,009 million euros (–3.1 percent) from Systems Solutions.
